USD/JPY Open 87.38 High 88.39 Low 86.97 Close 87.41
On Thursday Dollar/Yen continued to drop strongly, in line with the negative Interbank sentiment at nearly -5%. The currency couple depreciated from 88.39 to 87.26 yesterday, closing the day at 87.41. This morning descending extended down to 86.97. On the 1 hour chart the pair is testing the lower limit of the trading range, and on the 3 hour chart the downward channels is still trying to resume. Break above yesterday’s top and nearest resistance 88.39 would support further recovery of the Dollar. Immediate support is today’s bottom at 86.97, and consistent break bellow it could strengthen the Yen further down towards next target 86.09. Today was the Japan BoJ monthly economic report, already passed at 5 GMT. Quotes are moving just bellow the 20 and 50 EMA on the 1 hour chart, indicating bearish pressure, but with strong last green candle. The value of the RSI indicator is positive and rising, MACD is negative and inclining upwards, while CCI is about to cross up the 100 line on the 1 hour chart, giving overall light long signals.
Technical resistance levels: 88.39 89.10 90.00
Technical support levels: 86.97 86.09 85.00
Trading range: 86.90 – 87.55
Buy at 87.02 SL 88.43 TP 87.42
Written by iFOREX.bg